Selling Your Property in Japan: Costs, Agent Fees, and the Best Way to List
Selling real estate in Japan can feel overwhelming—not only because of the paperwork but also because of the costs involved. Understanding the main expenses and knowing how to work with an agent can help you avoid surprises and sell with confidence.
Main Costs of Selling a Property
1. Real Estate Agent Commission (仲介手数料 / Chūkai Tesūryō)
The commission is legally capped at:
3% of the sale price + ¥60,000 + consumption tax (10%).
Example: On a property selling for ¥40,000,000, the agent’s commission would be about ¥1,386,000 including tax. This fee is usually paid at closing, once the buyer’s funds are received.
2. Stamp Duty (印紙税 / Inshi Zei)
Required for the sales contract, this ranges from ¥10,000 to ¥600,000 depending on the contract price. For instance, a contract over ¥50,000,000 requires a ¥30,000 stamp. This cost can be avoided by using Docusign to create a digital contract and avoid paper altogether.
3. Mortgage Cancellation Costs (抵当権抹消登記 / Teitōken Masshō Tōki)
If a loan is still registered against the property, it must be cleared. Judicial scrivener fees are typically ¥20,000–¥50,000, plus a small registration tax (about ¥1,000 per mortgage).
4. Judicial Scrivener Fees (司法書士費用 / Shihō Shoshi Hiyō)
For handling ownership transfer and mortgage cancellation, expect around ¥50,000–¥100,000 depending on complexity.
5. Taxes on Gains (譲渡所得税 / Jōto Shotoku Zei)
If you sell at a profit, capital gains tax may apply:
- Short-term (owned ≤5 years): ~39% combined national + local.
- Long-term (owned >5 years): ~20%.
Exemptions exist, such as the ¥30million primary residence deduction. If the property is your primary residence and your capital gain is less than 30 million, then you pay no tax.
6. Prorated Taxes (固定資産税 / Kotei Shisan Zei & 都市計画税 / Toshi Keikaku Zei)
These fixed asset and city planning taxes are split between buyer and seller as of the handover date.
Why Exclusive Listings Work Best
When hiring an agent, sellers can choose from three contract types:
- General (一般媒介 / Ippan Baikai): Multiple agents can market the property, but none are obliged to prioritize it.
- Exclusive (専任媒介 / Sen’nin Baikai): One agent markets the property, but the seller may still find a buyer directly.
- Exclusive Right-to-Sell (専属専任媒介 / Senzoku Sen’nin Baikai): One agent controls all sales efforts; even direct buyers must go through them.
⚠️ A Word of Caution on General Agreements
Some sellers think that using a general agreement (一般媒介 / Ippan Baikai) is smart because it allows multiple agents to compete. In reality, it often backfires:
- Instead of focused marketing, it creates a feeding frenzy where agents rush to push their clients in first.
- The seller ends up at the center of the chaos, fielding pressure from all sides.
- Because no agent is sure of getting paid, the tone can quickly turn negative—and you, the seller, bear the stress.
Far from giving you more control, ippan baikai can undermine your position and weaken your relationship with the very professionals meant to support you.
By contrast, choosing an exclusive agreement usually works best because:
- The agent must register your property on REINS (the national real estate database) within a set period.
- REINS registration makes your property visible to all licensed agents across Japan.
- You avoid the risk of your property being quietly “hidden.”
The Double Fee Problem
In Japan, agents may collect commission from both buyer and seller (両手取引 / Ryōte Torihiki). While legal, this creates a temptation: some agents withhold properties from wider exposure to improve their chances of earning both sides’ commission.
🚨 Beware of the Double Fee Trap
A Double Fee Deal (Ryōte Torihiki) means the agent collects commission from both sides of the deal. While this is perfectly legitimate if the agent also finds the buyer, if an agent sets the marketing so that only they can find the buyer then it can work against you:
- Exposure is deliberately limited so the agent can try to capture both sides of the fee.
- It is not uncommon for these types of agents to refuse to accept a bid from a buyer being represented by another agent - effectively blocking your property from being sold.
- Your property may never be listed on REINS or major portals like Suumo or Homes.
- Properties can sit unsold for years—not because of the market, but because they were hidden from it.
This practice can drastically reduce your chances of selling at a fair price in a reasonable time frame.
How to Protect Yourself as a Seller
- Insist on REINS registration. Ask your agent for proof.
- Choose your contract carefully. An exclusive agreement gives you the best balance of exposure and commitment.
- Monitor marketing. Check that your property is listed on major sites (Suumo, Homes, Athome).
- Clarify double-fee handling. It’s fine if your agent brings the buyer, but not if they block others.
- Set expectations. If inquiries don’t come within a few months, revisit pricing or marketing.
The Bottom Line
Selling a property in Japan involves more than just setting a price. Between commissions, taxes, and legal fees, sellers need to budget carefully. But just as important is how you list your property. Ensuring REINS registration and broad exposure can be the difference between a smooth sale at a fair price—or watching your property sit unsold for years.
